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US equity markets opened flat, but march higher
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Upbeat jobless claims data
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GameStop tumbled after quarterly results
US equity markets opened flat on Thursday, but moved higher in the first hour of trading. At press time major US indices are gaining roughly 0.30%. Investors were focused on the ECB decision today - the Bank has slowed down its PEPP purchases. The Fed meets on September 21-22 so the issue of QE tapering will remain in the spotlight in the following days.
US jobless claims data, which was released today, turned out to be better-than-expected. Initial jobless claims fell from 345k to 310k (vs expected: 335k). Federal unemployment benefits expired earlier this week and there is a hope that this would encourage more Americans to return to the labour market.
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US100 has once again bounced off the 15,550 pts level, which remains key short-term support. Today the index broke above the EMA-100 average as well - a potentially promising sing. The 15,700 pts marks the major resistance. Range trading has continued for quite some time already. Tomorrow investors will pay attention to PPI inflation from the United States - a reading that could spark a debate about QE tapering, which may eventually impact tech stocks the most. Source: xStation5
Company News
According to Reuters, Ford Motor (F.US) will stop manufacturing cars in India and shut down its plants in the country. The US automaker reportedly made the decision because it was not profitable for it to continue. The process is expected to take about a year to complete, one of the sources said.
GameStop (GME.US) plunged in pre-market trading after the company posted quarterly adjusted loss of 76 cents per share, a figure that narrowed from last year’s -$1.42, but the result missed analysts forecasts by about 10 cents. The firm reported net sales of $1.18 billion, above the consensus estimate of $1.12 billion. The group's new executive team, comprised of former Amazon bosses, offered little in the way of near-term strategy options and declined to take questions during a brief earnings call with analysts.
United Airlines (UAL.US) trimmed its outlook due to the surge in Covid-19 cases, which has reduced passenger demand. The company now expects to post a loss in the third quarter. If current trends persist, the airlines may post a loss in the fourth quarter as well.
Ford Motor (F.US) shares are in an interesting spot right now. Since early-June the price has been in a downward trend. Taking a look at a daily chart, one may see a wedge pattern so a breakout may be on the cards soon. Source: xStation5
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